This document discusses various exit strategies for business owners looking to transition out of their company. It outlines steps in the exit process like setting exit goals, assessing personal readiness, and choosing an optimal exit option such as selling to an emotional partner, acquisition, IPO, liquidation, or maintaining as a lifestyle company. Key considerations for each option are provided, such as potential tax implications, preserving value, and minimizing risks. Examples of real companies that used different exit strategies are also briefly described. The document concludes with discussing the valuation and exit structuring process.

1. Name of presentation
Company name
More Free PowerPoint Templates at SmileTemplates.com

2. Business Exit Strategy
…a strategic withdrawal
THE PLANNED EXIT OF AN OWNER FROM
BUSINESS
In entrepreneurship and strategic
management an exit strategy, exit plan
or strategic withdrawal, is a way to
transition one’s ownership of a
company or the operation of the some
part of the company .

3. Steps of Exit
EXITING BUSINESS, PROTECTING
WEALTH

4. Exit Goals…
• Create and preserve business
value
• Minimize tax
• 4 D’s
DEATH DISABILITY DIVORCE DEPARTURE

5. Personal Readiness Test
 FINANCIAL READINESS
Total amount of investable asset
 MENTAL READINESS
Plan for post-exit days

6. Choose The Optimal Exit Option
 Lifestyle Company
 Acquisition
 Transition Ownership to Emotional Partner
 Initial Public Offering (IPO)
 Liquidation

7. LIFESTYL
E
COMPANY

8. Lifestyle Company
KEEP THINGS SMALL, TAKE OUT A
COMFORTABLE CHUNK,
AND SIMPLY LIVE ON THE INCOME.
Pros:
 Financial freedom.
Cons:
 Negative tax factors.
 Without long-term planning, sources of fund will
finish soon.

9. ACQUISITION

10. Acquisition
A CORPORATE ACTION IN WHICH A COMPANY
BUYS MOST, IF NOT ALL, OF THE
TARGET COMPANY’S OWNERSHIP STAKES IN
ORDER TO ASSUME CONTROL OF THE TARGET
FIRM.
Pros
 Strategic value Enjoy optimum value
 Multiple bidders Price to the stratosphere
Cons
 Acquisitions are messy and often difficult when
cultures and systems clash in the merged company.

12. TRANSITION
OWNERSHIP
TO AN
EMOTIONAL
PARTNER…
Someday, my son, all this will be
yours…

13. Transition Ownership To An
Emotional Partner
PASSING OWNERSHIP TO ANOTHER
TRUE BELIEVER WHO WILL
PRESERVE
YOUR LEGACY .
Pros
 Less due diligence required
 Emotional satisfaction
Cons
 Selling to family can tear the company apart with
jealousies and promotions that put emotion way
ahead of business needs .

14. EMPIRE… AS A GIFT
 ANY FAMILY BUSINESS
 THE WILLY WONKA CANDY COMPANY
The Brand is used on a range of candies in North America and a
range of chocolates bars in the United Kingdom.
The fictional Willy Wonka handed off his chocolate empire
to a little boy who was a loyal Wonka customer.

16. Initial Public Offering - IPO
SALE OF A COMPANY VIA
STOCK MARKET
Pros
 Highest value
 Covers of the magazines
Cons
 Long processing time
 High attorney and accounting cost
 Huge restriction and conditions

17. COAL INDIA LIMITED – AN IPO

18. LIQUIDATION

19. Liquidation
QUIT AND CLOSE THE BUSINESS
DOORS
Pros
 Easy and natural
 No negotiation involved
 No worry about transfer and control
Cons
 Just waste
 Undervaluation of assets
 End of reputation and business relationships

20.  APPOLO LIFE SCIENCE
Country : Australia
Sector: Bio-technology
Date: October,2008
Reason: Huge debts
 KLEINS
Country: Australia and New Zealand
Sector: Retail
Date: June, 2008
Reason: Mismanagement and debts

21. VALUATION OF BUSINESS

22. Process of Valuation
 DETERMINING THE VALUE
 Market share
 Product line
 Particular industry’s position – Growing or
dying
 FINDING THE BEST BUYERS
 WATCH THE DEBTS
 RECEIVE THE RECEIVABLES
 CONSIDER A SCHEDULE

23. EXIT …
 STRUCTURING
 TAX PLANNIING
 LEGAL
AGREEMENTS
 NOW,
ITS TIME TO
QUIT